If you have paid any attention to recent news about investment opportunities, chances are that you have heard about the latest high profile bitcoin exchanges being hacked. Unfortunately, this type of thing happens all too often. Of course the Bitcoin community is not in a total crisis, but there are more and more people becoming concerned in regard to the digital currency and the lack of appropriate security even in the top Bitcoin exchanges.
We would like to introduce you to a relatively new option that is available for trading Bitcoins. It is called binary options and recently there are more and more online brokers who are allowing traders the chance to trade Bitcoins in this manner.
What are Binary Options?
Binary options trading is a type of trading that allows you to purchase and sell options instead of shares. This means that instead of getting money back based on the value of how much a stock goes up or down, you instead get a predetermined amount of money if the stock or commodity meets a set of criteria.
In binary options trading you will either place a call or a put. Calling means that you think the value of a stock will go up in a set amount of time. If the stock price is the same or goes above the price you will receive a preset payout. If the stock is below the price you do not earn anything. Placing a put provides you with the option of selling a commodity at the strike price. This means that you think the value of the stock will go down, so you will make a profit from selling it at that particular price.
Simply put binary options traders predict whether the value of a certain asset will go up or down in a set amount of time. This is the only information that needs to be provided. It really is as simple as deciding to place a call or a put on an asset. Binary options trading allows you to make money quickly with little investment.
Benefits of Trading Bitcoins Using Binary Options
Now, what does binary trading have to do with bitcoins? There are several binary options brokers that now allow traders to use Bitcoins to trade with. This means that you can deposit bitcoins into your account and then begin making trades. One advantage of this is that you can make money trading without spending any real dollars.
In addition, many binary options brokers allow traders to trade bitcoin options. This means that Bitcoins provide another asset to trade.
Overall, Binary options brokers have created a safer way for individuals to trade their Bitcoins. Not only can these Bitcoins be used with these brokers to invest in the market, traders are also offered the option of making wagers on whether the price of Bitcoins will go up or down in a set amount of time.